News Column

Bahrain banks' loans are set to grow 10pc

June 25, 2014

Avinash Saxena

MANAMA: A spurt in industrial and commercial activity in the first half of the year suggests that bank lending in Bahrain is likely to grow at 10 per cent this year, an analyst has said.

"The liquidity is there and with more activity happening now there is more demand for loans," Bahrain-based regional investment bank, Securities and Investment Company (SICO) senior research analyst Chiradeep Ghosh said.

"Saudi, UAE and Qatari banks are likely to witness loan growth of 12pc to 14pc, 8pc to 10pc and 12pc to 14pc respectively," he said.

He was speaking on the sidelines of a Bahrain Association of Banks' chief executives' luncheon meeting at the InterContinental Regency Bahrain yesterday.

Replying to a question he said that the banks and financial institutions in Bahrain were gearing up towards offering more loans after a lull and expressed the hope that this would reflect positively on the economic growth of the kingdom.

Earlier, in a presentation titled 'Buy, Sell or Hold? How analysts really rate banks', Mr Ghosh highlighted basic fundamentals of the banking sector across the Gulf.

His presentation revealed what matters most to equity research analysts when they evaluate financial institutions. Besides critical parameters and ratios what interests analysts in particular are capital adequacy ratios and their impact on the profitability and risk profile of banks, he said. The presentation was followed by a live case study.

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Source: Gulf Daily News (Bahrain)

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